We explore how much safe money you should maintain throughout retirement for financial security and peace of mind without sacrificing long-term growth potential. Instead of using cookie-cutter rules, we break down a personalized approach to balancing safety and growth in your retirement portfolio.

• Start with your annual spending needs to calculate your safe money base
• A good starting point is having 5 years of living expenses in safe assets
• Your safe money requirements should decrease as guaranteed income sources (Social Security, pensions) begin
• The 60/40 portfolio rule doesn't work for everyone - your allocation should reflect your specific situation
• As your portfolio grows, the percentage allocated to safe money typically decreases
• Too much safe money risks losing purchasing power to inflation over time
• Consider your emotional "sleep number" - how much safe money you need to feel secure
• Factor in upcoming expenses like healthcare, travel, and home renovations
• Cookie-cutter planning fails because everyone's situation is unique and dynamic

Submit your financial questions at earlyretirementpodcast.com for a chance to have them answered in a future episode.

Create Your Custom Early Retirement Strategy Here

Get access to the same software I use for my clients and join the Early Retirement Academy here

Ari Taublieb, CFP ®, MBA is the Chief Growth Officer of Root Financial Partners and a Fiduciary Financial Planner specializing in helping clients retire early with confidence.

“Early Retirement – Financial Freedom” is a podcast produced by Root Financial Partners, an SEC-registered investment adviser. The content provided is for informational and educational purposes only. It should not be interpreted as investment, legal, or tax advice. I may reference planning situations based on real client experiences, but they’ve been simplified for clarity. Always consult your own financial advisor before making decisions.

Listening to this podcast does not create or imply an advisory relationship with Root Financial. Investing involves risk, including the potential loss of principal. Past performance does not guarantee future results. Testimonials and endorsements do not reflect all client experiences and are not compensated. Learn more at our website or by reviewing our Form ADV at https://adviserinfo.sec.gov.